Credit: peshkov/stock.adobe.com Artificial Intelligence Purveyor Faces Whistleblower Suit Over Exaggerations About Product Portfolio
When McGowan said he could not close a deal to sell a system for detecting unemployment insurance fraud because the company had no such product, the company CEO told him to "sell them something," the suit claims.
September 20, 2021 at 02:04 PM
4 minute read
Technology Media and Telecom
A New Jersey artificial intelligence company is accused in a whistleblower suit of overstating its revenues, its capabilities and the size of its product line.
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
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